These 3 Stocks Will Power Elon Musk’s Robotics Boom?

James Altucher claims Elon Musk is about to unleash what he calls an infinite money glitch, and he claims it could help create quadrillions of dollars in new wealth. The technology he's talking about is humanoid robots and physical AI, but Altucher says the biggest opportunity may not be Tesla at all. Instead, he's teasing three semiconductor companies that provide the eyes, nervous system, and motor control these robots need, and he believes they could benefit no matter which humanoid robot ultimately wins. The only problem is James won't tell you the name of these three stocks unless you buy his newsletter, but I have good news. I sat down and watched his hour-long presentation and was able to figure out each stock based on the clues that James left. In this video, I'm going to reveal each one completely free. There's lots of stocks to uncover, so we're just going to jump into it, and the first stock has to do with robotic eyes. According to James, the first clue is when engineers tore apart Tesla's autopilot camera system, and they found one company's image sensors inside. Altucher said these sensors became the eyes of the system, because without them, physical AI can't actually see or understand the world around it. The second clue is market share. He says this company already supplies a huge percentage of the world's advanced driver assist systems, so it already has experience producing vision technology at massive scale. And the biggest clue is that the CEO recently committed billions of dollars towards expanding into what he specifically called the physical AI realm, including robotics. Put all these clues together, and the stock is ON Semiconductor ticker ON. ON Semiconductor company that mainly makes the power and sensing chips used in cars, factories, and data centers, and other electronics. And this is where I think Altucher's framing gets a little aggressive. He makes ON Semiconductor sound like a pure play on giving humanoid robots their vision, but today that's a very small piece of their actual business. In the second quarter, ON Semiconductor generated about 1.6 billion in revenue while it's entire intelligent sensing group generated only about 229 million. Automotive alone produced roughly 781 million. The physical AI strategy is real, especially with its plan Synaptics acquisition, but the 5.7 billion dollar deal isn't expected to close until mid-2027. Meanwhile, on semi trades around $85 a share giving it roughly a 33 billion dollar valuation. So, the question is, does robotics become large enough to actually move a company this size or is Al Tuscher getting way ahead of the numbers? The case for on semi is actually pretty compelling even without humanoid robots becoming a monster hit overnight. The company appears to be coming out of its semiconductor downturn. Revenue grew 9% last quarter. Free cash flow jumped 425 million and its AI data center business is now expected to more than double this year. So, they already have improving fundamentals with robots not even taking off yet. Then, you add the longer-term opportunity. On semi already has major businesses in power and sensing and the Synaptics acquisition would give it more of the computing and connectivity technology needed for intelligent machines. And more importantly, the revised deal is now only 5.7 billion and is expected to immediately add to adjusted earnings. What gives me pause is robotics is still just a tiny part of the business. They also have to successfully integrate Synaptics and semiconductor demand can be extremely cyclical. So, for this thesis to work, I don't need optimists to take over the world. I need the existing business to keep recovering, AI data center to growth to remain strong, margins to improve, and physical AI to gradually become a meaningful new revenue stream. And after the recent pullback of the stock, I truly believe this stock is a strong buy right now. I'm going to reveal the rest of the stocks in 15 seconds, but before I do, I want to tell you about my free report on the top 10 stocks to buy and hold right now. These are companies I believe have the best mix of strong long-term potential and growth. When you're done watching, click the link in the description, enter your email, and I'll send it straight to your inbox. Now, here's clues for the second robotic stock that James says is the nervous system of robotics. The first clue is that robots need to know exactly where every joint's positioned at all times. Al Teaser says this company makes specialized magnetic sensing chips that handle the job. And according to Teaser, it's the number one producer of these chips in the world. But the biggest clue is the number of chips each robot could need. Al Teaser says the company's own CEO estimates that an advanced humanoid robot could contain roughly 150 of its sensors, about twice as many as electric vehicles. That matters because if companies like Tesla eventually produce millions of robots, even a relatively inexpensive sensor becomes a huge opportunity when you multiply it by 150 per machine. And according to James, unlike Nvidia, this is still a small semiconductor company. Put all those clues together, the stock is almost certainly Allegro MicroSystems, ticker ALGM. Allegro MicroSystems is basically a sensor and power chip companies. Its chips measure things like position, speed, electrical current, and control motors, which is why they're already used in cars and industrial equipment. But the reality check on this stock is the same as on Semi. This is not a humanoid robotics company. In its latest quarter, about 165 million of its 259 million in revenue came from automotive, meaning cars still account for nearly 2/3 of the business. Robotics sit inside the much smaller industrial category. The good news is the underlying business is growing quickly. Revenue increased 27% year-over-year, gross margin improved 48.5% and adjusted earnings more than doubled to 23 cents per share. At roughly $39 a share, Allegro is valued at around 7.2 billion, or roughly 7 and 1/2 times trailing sales. So, investors are already paying for a fair amount of future growth. So, the question going into the verdict is, can robotics grow from an interesting side opportunity into something larger enough to justify the valuation? The case for Allegro is pretty straightforward. The core business is already improving before humanoid robots can take off. Revenue is growing, earnings improved sharply, and data centers reached a record 17% of sales. Even more interesting, Allegro says its robotics automation revenue more than doubled last year, albeit from a small base, and it's already seeing a growing design win with humanoid robot customers. What gives me pause is the valuation. At $39 a share, you're still paying a premium for a company whose biggest business remains automotive, and humanoid robotics is nowhere near large enough yet to justify the stock on its own. But, this is also another stock that's been beaten down. Allegro traded as high as $71 in June, meaning shares are roughly down 45% from recent highs. So, here's what needs to go right for this stock to do well. The automotive recovery needs to continue, data center sales need to keep growing, margins need to improve, and most importantly, those humanoid design wins eventually need to turn into meaningful production revenue. I don't necessarily think this stock is a strong buy like on semi, but I do still think it's a good buy at its current price. Now, let's look at the clues for the last stock that James is pitching, and he says this stock helps robots move. According to James, a humanoid robot has dozens of joints, and every one of those joints needs extremely precise control so the robot can do something powerful like lift a heavy object, but also something delicate like handling an egg. Our teacher says this company supplies the microcontrollers, sensors, and motor control components that make that possible. And then comes the much larger clue. He says the company was recently named as a partner in Nvidia's Halos robotics platform, putting its technology directly into Nvidia's push into physical AI. And Morgan Stanley has it also identified the company as an important part of the emerging humanoid robotics supply chain. So, unlike the first two stocks, this one isn't about helping the robot see or understand where its body is. It's about controlling the actual movement. Put all these clues together and the stock is STMicroelectronics, ticker STM. STM Microelectronics is a massive semiconductor company that makes microcontrollers, sensors, and power chips that go inside cars, factories, and consumer electronics, and industrial equipment. Again though, like the previous two stocks, humanoid robotics is just a tiny part of this company. Today, the company is far more dependent on automotive and industrial chip demand than an optimist or any other humanoid platform. The business is recovering though. In the second quarter, revenue jumped 26% year-over-year to 3.49 billion with automotive revenue up 16% and industrial up 34%. Gross margin came in around 35%. At roughly $58 a share, STM is now worth about $51 billion, or around 3.9 times trailing sales. So, the question is now, does robotics become a big enough new growth engine to matter for a company already doing more than $11 billion a year in revenue? The case for STM is pretty similar to Allegro. The underlying business is already improving before humanoid robotics have taken off. Booking strength into cross its end markets, and management expects about 3.7 billion in third quarter revenue. It's also seeing strong momentum outside robotics, especially in AI data centers, where ST now expects more than 1 billion in revenue this year, and potentially more than 2 billion next year. What gives me pause is that STM is a huge company and humanoid robots are still a very small piece of the story. So, even if robotics grow quickly, it's going to take time before that meaningfully moves overall revenue. Also, the valuation isn't exactly dirt cheap. But, like Allegro, the stock has already pulled back substantially. STM recently traded near all-time highs around $80, and today it's around 56, a roughly 30% dip below the peak. So, what needs to happen for the stock to do well? The semiconductor recovery needs to continue, margins need to improve, and the AI data center business needs to deliver on management's aggressive growth targets. And robotics eventually needs to become another meaningful source of demand for its sensor and motor control chips. But, when you add up everything about this stock, I believe this stock is also another buy. And before you go, don't forget to grab my free report on the top 10 stocks to buy and hold right now. These are companies I believe offer the best combination of long-term growth potential and strong underlying businesses. Just click the link in the description, enter your email, and I'll send the full report straight to your inbox.